LIPA picks Caithness for new power plant

The Long Island Power Authority staff has decided to seek to negotiate a contract to buy power from a new 706-megawatt, natural gas fueled power plant in Yaphank that could be up and running by 2018.

The authority’s staff made the recommendation to build a large power plant on Long Island on Thursday, just days before Gov. Andrew Cuomo is expected to sign legislation that would restructure the authority.

LIPA staff recommended the authority negotiate a contract with Caithness, rather than with J-Power USA Development, which proposed a 377-megawatt power plant in Shoreham.

The authority staff hopes to present a final agreement to the trustees next fall, after the Town of Brookhaven completes an environmental review.

LIPA earlier narrowed the choices to those two finalists, after receiving proposals from 16 entities for 45 projects, including 29 on Long Island.

Caithness would develop the project next to its already-operating 326-megawatt power plant, which supplies the authority with power through a 20-year agreement.

“It is important and timely to make this selection, so that time and attention can now be devoted by Caithness to siting and permitting its proposed project for a 2018 in-service date,” LIPA Chief Operating Officer John D. McMahon wrote in the recommendation.

McMahon said it selected Caithness because it results in “comparable, if not lower costs” to customers and its size gives the authority added flexibility, possibly allowing it to retire or repower other plants.

The authority expects to need between 900 and 1,200 megawatts of new generating resources by 2022. LIPA expects its current capacity to be 22 megawatts short by 2015, 190 megawatts short by 2016 and between 250 and 670 megawatts by 2017.

The authority plans to buy power from other sources and through existing plants and possibly by repowering the plant at National Grid’s E.F. Barrett power station.

McMahon said even though its structural changes may be imminent, LIPA believes it’s appropriate to go ahead with the purchase of additional power, because, “even in the midst of change, it is critically important to continue to plan and move forward with developing the energy infrastructure essential in so many ways to the future of Long Island.”

What if we spent 3 billion dollars on residential solar rebatesby 2018? at LIPAs current rebate of $1 a watt that would give us 3 billion watts of then free energy. LIPAs is saying after spending 3 billion dollars on a New gas fired plant our rates would go up more and we would still be pumping that much more co2 polluting the air over the south shore of Lon Islands beaches…..while the residential solar power would be free and non polluting? What do Long Islanders need to get the big picture here?

About the Author

Claude Solnik covers healthcare, finance, and technology/energy for Long Island Business News.